The Bipartisan Policy Center (“BPC”) has launched an insurance task force to assess the impact of the Dodd-Frank Wall Street Reform and Consumer Protection Act and identify ways to improve and modernize insurance oversight.
The insurance task force will be co-chaired by Republican William H. McCartney, former president of the National Association of Insurance Commissioners and Nebraska state insurance director, and Democrat Robert E. Litan, longtime regulatory policy scholar and former Clinton administration official.
“The Dodd-Frank Act intended to create a framework for 21st century banking regulation while leaving insurance regulation largely in state hands. However, Dodd-Frank has impacted insurance regulation far more than most predicted, and those insurers it has affected are caught up in a regulatory system largely designed for banks,” said Mr. McCartney.
BPC will assess how the changes precipitated by the implementation of the Dodd-Frank Act have affected the insurance industry. The task force will hold a series of private stakeholder roundtables and hosting public events to gather insights into this issue. Topics to be explored include:
- The Federal Insurance Office (“FIO”), the Federal Reserve, the Financial Stability Oversight Council (“FSOC”), and the federal governmental presence in insurance regulation, and whether to create an optional federal charter for insurance companies;
- The state insurance regulatory system (e.g., solvency regulation, state guaranty funds, and uniform standards);
- The global insurance regulatory system as it relates to U.S. decisions on insurance regulation, global cooperation, and coordination on insurance regulation; and
- Consumer protection regulation to help ensure that families and businesses have access to safe and affordable insurance products they need and want.
The insurance task force is part of BPC's financial regulatory reform initiative, which has been examining what has been working and not working with Dodd-Frank and ways to improve the Act.
BPC will publish a series of issue briefs on key topics and culminate with the release of a suite of policy recommendations. “What is crystal clear is that insurers and banks have very different business models and demand very different regulatory policies,” said Mr. Litan. “We hope our policy recommendations will lay the groundwork for meaningful reforms that will improve oversight, while allowing the insurance market to function efficiently and serve its vital role in the nation's economy.”
Learn more: www.bipartisanpolicy.org.
Victoria Spears
Victoria Prussen Spears is senior vice president of Meyerowitz Communications Inc., a law firm marketing communications consulting company. A graduate of Sarah Lawrence College and Brooklyn Law School, Ms. Spears was an attorney at a leading New York City law firm before joining Meyerowitz Communications. She may be contacted at [email protected].